The popularity and worldwide adoption of the the Global Investment Performance Standards (GIPS®) by investment management firms is largely due to demand by asset owners.
The release of the Exposure Draft of the 2020 Global Investment Performance Standards (GIPS®) in August has forced many firms to assess how the new requirements will impact their business.
CFA Institute released the first major revisions to the GIPS® standards on August 31, 2018. The proposed revisions represent the most significant change to the standards since the 2010 edition of the GIPS standards went into effect on January 1, 2011.
This post addresses best practices for marketing when claiming compliance with the GIPS standards.
Compliance with the GIPS® standards is recognized as an industry best practice and has become a de facto requirement, especially in the institutional money management space, in order to stay competitive.
A GIPS®-compliant presentation contains a number of required statistics. One such metric is the internal dispersion of individual portfolios within a composite.
Portability refers to the ability of a GIPS®-compliant firm to present a track record that was achieved at another firm. When one firm hires a portfolio manager, there is usually a desire to market the portfolio manager’s track record while employed at the prior firm.
In 2002, the Sarbanes Oxley Act was enacted to augment the regulation of accounting and disclosures for public companies. This was in direct relation to aggressive accounting methods, the technology bubble, and other instances of corporate malfeasance.
The GIPS® Technical Committee recently released three new GIPS Q&A’s that are all effective as of April 18, 2018.
Consultant database reporting is an important business consideration for many investment management firms. The databases serve as a gateway for investment managers to reach institutional and retail assets alike. A recent trend in the industry is that of increased due diligence.
More firms continue to be implicated as fallout from the F-Squared Investments, Inc. enforcement action continues.
Firms of all sizes frequently ask about the relevance and importance of forming a GIPS® Committee within their organization. Startup firms debate whether a GIPS Committee provides any added value when limited personnel causes constraints on resources.
Firms that claim compliance with the GIPS® standards are required to notify CFA Institute of their claim of compliance.
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